×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Liquidators regain control of Bosasa companies after court ruling

Employees outside African Global Operations (formerly Bosasa) offices in Krugersdorp in February 2019. Liquidators will again be in charge of the group of companies pending their appeal to the Supreme Court of Appeal on the resolution by Bosasa directors to place the companies under liquidation.
Employees outside African Global Operations (formerly Bosasa) offices in Krugersdorp in February 2019. Liquidators will again be in charge of the group of companies pending their appeal to the Supreme Court of Appeal on the resolution by Bosasa directors to place the companies under liquidation.
Image: Belinda Pheto

Liquidators are once again back in charge of the affairs of the African Global Operations group of companies.

This follows an order made by the high court in Johannesburg on Wednesday, granting liquidator Murray Cloete leave to appeal to the Supreme Court of Appeal (SCA) against an earlier judgment by the high court on March 14.

In that judgment, the high court reversed the liquidation of the African Global Operations group of companies. It set aside a decision taken by six directors of African Global Operations, formerly known as Bosasa, on February 12 to place the group of companies into voluntary liquidation.

The directors of the various companies needed a solution following the closure of their bank accounts. Banks closed the accounts in response to damning allegations of state capture levelled against the companies.

In an urgent application, heard on March 13, African Global Operations told the court that a special resolution taken by directors that led to the companies being placed under liquidation, was void from the beginning and was of no force and effect.

Following the judgment last week, the affairs of the companies were taken over again by African Global Operations.

Murray, however, applied for leave to appeal against the ruling by acting judge Goolam Ameer.

Following submissions made by counsel for Murray, Dennis Fine SC, and by African Global Holdings counsel Mike Hellens Helleens SC on Wednesday, judge Ameer granted the  liquidator leave to appeal to the SCA.

Murray said in response to the ruling on Wednesday: "The legal effect of the granting of the leave to appeal is that the judgment by the judge which came out on the 14th of March is now suspended and the liquidators stay in charge of the affairs of the company."

Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.